hello, In the question 3 in chapter 7 practice questions, I am confusing that why the answer of the capacity ratio is been simply actual hours / budgeted hours although each hours have different units produced. the budgeted 8000 hours is regarding of 20,000units and the actual hours is regarding of 25,000units.
I thought that since they are different hours to produce per unit, 8000hours / 20,000 unit= 0.4 budgeted hours per unit and 0.4hours x 25,000= 10,000, which is budgeted hours to produce 25,000.
Please do not post the same question twice – we promise to answer within 24 hours and usually we answer much faster than that. Asking the question twice will not get you an answer any faster 🙂
I have answered your other post!
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